How this fund helped small businesses remain open during COVID-19 crisis

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/09/current-strommast-power-line-electricity-820x547.jpg" alt="" class="wp-image-411969" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/09/current-strommast-power-line-electricity-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/current-strommast-power-line-electricity-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/current-strommast-power-line-electricity-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/current-strommast-power-line-electricity-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/current-strommast-power-line-electricity.jpg 910w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>Photo: vai Pxfuel</figcaption></figure>



DAKAR, Sept 9 (Reuters) &#8211; Senegal has completed reforms that will unlock a five-year grant of $550 million from the United States that will help build high-voltage power transmission lines and substations to boost access to electricity.



The grant from the Millennium Challenge Corporation (MCC), the U.S. government&#8217;s main development fund, will enable Senegal to address critical problems in the power sector, Mahmoud Bah, acting chief executive officer of the MCC, told Reuters.



It will be supplemented by $50 million from the government of the West African nation.



Bah said ahead of a signing ceremony in the capital Dakar on Thursday that Senegal recently passed regulatory reforms which were conditional for it to start the clock and receive the funds.



The country&#8217;s parliament passed a pair of bills in June that break the monopoly of the state power company and open up the electricity market to private investment. The reform will create an independent regulator and grant private firms access to power transmission and distribution networks.



&#8220;There have been a series of laws that were passed and policies that were addressed and institutions that were set up. Those conditions are met today,&#8221; Bah said.



<h3 class="wp-block-heading" id="h-read-more-imf-approves-650-mln-in-aid-for-senegal-s-covid-19-recovery">Read more: <a href="https://www.cnbcafrica.com/2021/imf-approves-650-mln-in-aid-for-senegals-covid-19-recovery-2/">IMF approves $650 mln in aid for Senegal’s COVID-19 recovery</a></h3>



Senegal, like most countries in sub-Saharan Africa, has seen rapid economic and population growth in recent years, with cities such as Dakar witnessing a construction boom, while critical infrastructure including power has lagged.



The country suffered severe power generation and supply outages a decade ago, crippling business and contributing to violent riots. Although supply has improved in recent years, Bah said the underlying problems remain.



&#8220;What got the power sector in trouble 10 years ago, is still going to happen if the problems are not addressed,&#8221; he said.



He added that over 70% of the funds will be used to build high-voltage overhead and undersea transmission lines, substations and automatic load-shedding systems to boost supply and cost-effective electricity around the Dakar area.



The rest of the funds will improve electricity in other areas far from the capital and strengthen the country&#8217;s power regulatory system.



The MCC has provided similar power sector funding to other West African nations including Burkina Faso and Benin. 



(Reporting by Bate Felix in Dakar Editing by Matthew Lewis)

current-strommast-power-line-electricity

Senegal starts clock on $550 million U.S. grant to boost power supply

How investors’ risks are biting off Nigerian equities

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="527" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/09/GettyImages-657649320-820x527.jpg" alt="" class="wp-image-411963" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/09/GettyImages-657649320-820x527.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/GettyImages-657649320-300x193.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/GettyImages-657649320-140x90.jpg 140w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/GettyImages-657649320-768x494.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/GettyImages-657649320-1536x988.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/GettyImages-657649320-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>Somali President Mohamed Abdullahi Mohamed attends the East Africa&#8217;s regional Intergovernmental Authority on Development (IGAD) Special Summit on Somali refugees on March 25, 2017 in Nairobi. / AFP PHOTO / SIMON MAINA (Photo credit should read SIMON MAINA/AFP via Getty Images)</figcaption></figure>



MOGADISHU, Sept 9 (Reuters) &#8211; Somalia&#8217;s two most powerful leaders were locked in a standoff on Wednesday after they named different men to head the intelligence service of the politically unstable nation in the Horn of Africa.



The row between President Mohamed Abdullahi Mohamed and Prime Minister Mohammed Hussein Roble, nominally over a murder investigation, marks an escalation of months of tension between them in a country riven by militant attacks and clan rivalries.



On Monday, Roble suspended Fahad Yasin, director of the National Intelligence Service Agency, saying he had failed to deliver a report on the case of an agent who disappeared in June.



Roble appointed another man, Bashir Mohamed Jama, as interim head of the agency.



<h3 class="wp-block-heading" id="h-read-more-somalia-reviving-ties-with-kenya-after-nearly-six-months">Read more: <a href="https://www.cnbcafrica.com/2021/somalia-reviving-ties-with-kenya-after-nearly-six-months/">Somalia reviving ties with Kenya after nearly six months</a></h3>



But the president called Roble&#8217;s move unconstitutional and named a third man, Yasin Abdullahi Mohamed, as head on Tuesday.



The president&#8217;s appointee took over at a handover ceremony on Wednesday, the agency said on Twitter. Security around its headquarters was tight, local residents said.



Later on Wednesday Roble appointed former finance minister Abullahi Mohamed Nur as the new internal security minister, his office said in a statement. Nur is currently a lawmaker who has been critical of the president.



Subsequently on Wednesday the president said in a statement that the dismissal of the minister and the appointment of a new one was unconstitutional, making the change &#8220;null and void&#8221;.



On Tuesday, the African Union, the United Nations and foreign donor nations, including Britain and the United States, had urged a de-escalation of the row, asking the two leaders to &#8220;avoid any actions that could lead to violence&#8221;.



Roble and Mohamed had clashed in April, when the president unilaterally extended his four-year term by two years, prompting army factions loyal to each man to seize rival positions in the capital, Mogadishu.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2020/somalia-expects-to-announce-winners-of-first-petroleum-auction-early-2021/">Somalia expects to announce winners of first petroleum auction early 2021</a></h3>



The confrontation was resolved when the president put Roble in charge of security and organising delayed legislative and presidential elections. That process was supposed to be concluded next month but several days ago was pushed back again.



In a statement on Tuesday, the president named Yasin, the man Roble had sacked, as his personal security adviser.



Also on Tuesday, Roble accused Mohamed of &#8220;obstructing effective investigation&#8221; of the case of Ikran Tahlil Farah, the agent who went missing while working in the cyber security department of the intelligence agency.



Her family have said publicly they believe she was murdered, and they hold the agency responsible.



The agency has not responded to the family&#8217;s accusation.



On Wednesday the family filed a case in a military court seeking an arrest warrant for four NISA officials, including the sacked boss Yasin, whom they hold responsible for Farah&#8217;s disappearance, lawmaker Mahad Mohamed Salad told Reuters. 



(Reporting by Abdi Sheikh; Writing by Duncan Miriri; Editing by Mark Porter and Clarence Fernandez)

KENYA-SOMALIA-IGAD-SUMMIT

Somalia on edge as president, PM clash over intelligence chief

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/GettyImages-1189719961-820x547.jpg" alt="" class="wp-image-405387" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/GettyImages-1189719961-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/GettyImages-1189719961-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/GettyImages-1189719961-120x80.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/GettyImages-1189719961-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/GettyImages-1189719961-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/GettyImages-1189719961-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>Nigeria President Muhammadu Buhari attends the fifty-sixth ordinary session of the Economic Community of West African States in Abuja on December 21, 2019. (Photo by Kola SULAIMON / AFP) (Photo by KOLA SULAIMON/AFP via Getty Images)</figcaption></figure>



CONAKRY, Sept 8 (Reuters) &#8211; West Africa&#8217;s main political and economic bloc suspended Guinea&#8217;s membership on Wednesday following a weekend military coup that ousted President Alpha Conde and dealt the latest in a flurry of setbacks to democracy in the region.



During a virtual summit, leaders from the 15-member Economic Community of West African States (ECOWAS) demanded a return to the constitutional order and Conde&#8217;s immediate release, and also agreed to send a high-level mission to Guinea as soon as Thursday, said Burkina Faso&#8217;s Foreign Minister Alpha Barry.



&#8220;At the end of that mission, ECOWAS should be able to re-examine its position,&#8221; Barry told reporters.



He did not announce any immediate economic sanctions against Guinea, as ECOWAS imposed against Mali following a coup there in August 2020.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2021/elite-guinea-army-unit-says-it-has-toppled-president/">Elite Guinea army unit says it has toppled president</a></h3>



Some experts say ECOWAS&#8217;s leverage with Guinea could be limited, in part because the country is not a member of the West African currency union and not landlocked like Mali.



The economic bloc&#8217;s response is being closely watched amid criticism from pro-democracy advocates that it has not stood up robustly enough in recent months against democratic backsliding in West Africa.



ECOWAS remained silent last year as Conde and Ivory Coast President Alassane Ouattara sought third terms after changing constitutions that would have forced them to step down, moves denounced as illegal by their opponents.



Activists say this has contributed to West Africans&#8217; loss of faith in democracy and made military coups more likely.



Mali&#8217;s military staged a second coup in May this year. ECOWAS said on Tuesday it was concerned transitional authorities there had not made sufficient progress toward organising elections next February as promised.



<h2 class="wp-block-heading" id="h-prisoner-releases">PRISONER RELEASES</h2>



Guinea&#8217;s coup leader, Mamady Doumbouya, a former French legionnaire, has pledged to install a unified, transitional government but has not said when or how that will happen.



In an apparent gesture to Conde&#8217;s civilian opponents, at least 80 political prisoners detained by the president were released on Tuesday evening, many of whom had campaigned against his constitutional change.



Doumbouya also met the heads of Guinea&#8217;s various military branches for the first time on Tuesday, hoping to unify the country&#8217;s armed forces under the junta&#8217;s command.



Guinea&#8217;s main opposition leader, Cellou Dalein Diallo, who finished runner-up to Conde in three successive elections, told Reuters on Tuesday he would be open to participating in a transition back to constitutional governance.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2021/toppled-conde-failed-to-live-up-to-pledges-in-guinea/">Toppled Conde failed to live up to pledges in Guinea</a></h3>



In a statement on Tuesday evening, Conde&#8217;s party said it &#8220;noted the advent of new authorities at the head of the country&#8221; and called for the president&#8217;s swift and unconditional release.



Since the putsch, life in the streets of Conakry appears to have returned to normal, with some military checkpoints removed.



Fears that the power struggle could hinder Guinea&#8217;s production of bauxite, a mineral used to make aluminium, have begun to ease. The country&#8217;s largest foreign operators say they have continued to operate without interruption.



Aluminium hit a fresh 10-year high on Monday after news broke of unrest in Guinea, which holds the world&#8217;s largest bauxite reserves. Doumbouya has pledged that mining will continue unhindered. 



(Additional reporting by Christian Akorlie in Accra; Writing by Cooper Inveen and Aaron Ross, Editing by Hereward Holland, Timothy Heritage and Gareth Jones)

NIGERIA-SECURITY-POLITICS-DIPLOMACY-ECONOMY

West African regional bloc suspends Guinea after coup

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-1233035258-820x547.jpg" alt="" class="wp-image-411043" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-1233035258-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-1233035258-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-1233035258-120x80.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-1233035258-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-1233035258-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/GettyImages-1233035258-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>UKRAINE &#8211; 2021/05/21: In this photo illustration the International Monetary Fund (IMF) logo is seen on a smartphone screen. (Photo Illustration by Pavlo Gonchar/SOPA Images/LightRocket via Getty Images)</figcaption></figure>



WASHINGTON, Sept 7 (Reuters) &#8211; The International Monetary Fund&#8217;s executive board on Tuesday approved $567 million in emergency support for Tanzania to help it finance a COVID-19 vaccination campaign and meet the health and social costs of the pandemic, the IMF said in a statement.



The IMF board approved a disbursement of $189 million to Tanzania under its Rapid Credit Facility (RCF), as well as $378 million under the Rapid Financing Instrument (RFI), the global lender said.



The COVID-19 outbreak and associated travel restrictions have led to the collapse of the tourism sector in the East African country, which had denied the existence of the pandemic under the late president, John Magufuli.



<h3 class="wp-block-heading" id="h-read-more-tanzania-turns-to-imf-loan-boosts-government-spending-by-4">Read more: <a href="https://www.cnbcafrica.com/2021/tanzania-turns-to-imf-loan-boosts-government-spending-by-4/">Tanzania turns to IMF loan, boosts government spending by 4%</a></h3>



After his death in March and the takeover by President Samia Suluhu Hassan, Tanzania has started acknowledging the crisis, which caused a major deceleration to 4.8 percent growth in 2020, with growth to remain subdued in 2021.



The IMF said Tanzania needs funds equal to about 1.5 percent of its gross domestic product as authorities implement a comprehensive plan to mitigate the effects of the pandemic, now in a third wave.



The new funding will allow Tanzanian officials to address &#8220;the urgent health, humanitarian, and economic costs&#8221; of the pandemic, the IMF said. It will also help Tanzanian officials mobilize additional support from development partners, it said.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2021/tanzania-to-request-to-join-covax-vaccine-sharing-facility-who/">Tanzania to request to join COVAX vaccine-sharing facility – WHO</a></h3>



&#8220;Tanzania requires urgent financial assistance,&#8221; said Bo Li, IMF deputy managing director, adding that authorities&#8217; plans for a vaccination campaign and increased health and social spending would help mitigate the impact of the pandemic.



He said it would be critical to ensure that the new funds are spent on fighting the pandemic, and to maintain fiscal and debt sustainability, while preserving financial stability.



It would also be important for authorities to monitor the banking system&#8217;s health in light of increased banking sector vulnerabilities, he said in a statement.



&#8220;Once the crisis abates, the authorities appropriately intend to resume implementing reforms to achieve sustainable and inclusive growth,&#8221; he said. 



(Reporting by Andrea Shalal; editing by Chris Reese and Richard Pullin)

In this photo illustration the International Monetary Fund (

IMF approves $567 mln in emergency support for Tanzania

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="740" height="416" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/09/106553902-15905961992020-05-03t000000z_392955759_rc24hg9p1seb_rtrmadp_0_health-coronavirus-who-ryan.jpeg" alt="" class="wp-image-411927" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/09/106553902-15905961992020-05-03t000000z_392955759_rc24hg9p1seb_rtrmadp_0_health-coronavirus-who-ryan.jpeg 740w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/106553902-15905961992020-05-03t000000z_392955759_rc24hg9p1seb_rtrmadp_0_health-coronavirus-who-ryan-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/106553902-15905961992020-05-03t000000z_392955759_rc24hg9p1seb_rtrmadp_0_health-coronavirus-who-ryan-160x90.jpeg 160w" sizes="(max-width: 740px) 100vw, 740px" /><figcaption>Executive Director of the World Health Organization’s (WHO) emergencies program Mike Ryan speaks at a news conference on the novel coronavirus (2019-nCoV) in Geneva, Switzerland. Denis Balibouse | Reuters</figcaption></figure>



Covid-19 is likely “here to stay with us” as the virus continues to mutate in unvaccinated countries across the world and previous hopes of eradicating it diminish, global health officials said Tuesday.



“I think this virus is here to stay with us and it will evolve like influenza pandemic viruses, it will evolve to become one of the other viruses that affects us,” Dr. Mike Ryan, executive director of the World Health Organization’s Health Emergencies Program, said at a press briefing.



<h3 class="wp-block-heading" id="h-read-more-latest-on-the-worldwide-spread-of-the-coronavirus">Read more: <a href="https://www.cnbcafrica.com/2021/latest-on-the-worldwide-spread-of-the-coronavirus-4/">Latest on the worldwide spread of the coronavirus</a></h3>



Officials at the global health agency have previously said vaccines do not guarantee the world would eradicate Covid-19 like it has other viruses. Several leading health experts, including White House chief medical advisor Dr. Anthony Fauci and Stephane Bancel, CEO of Covid vaccine maker Moderna, have warned that the world will have to live with Covid forever, much like influenza.



“People have said we’re going to eliminate or eradicate the virus,” Ryan said. “No we’re not, very, very unlikely.”



If the world had taken early steps to stop the spread of the virus, the situation today could have been very different, WHO officials said.



“We had a chance in the beginning of this pandemic,” Maria Van Kerkhove, the WHO’s technical lead on Covid-19, said Tuesday. “This pandemic did not need to be this bad.”

106553902-15905961992020-05-03t000000z_392955759_rc24hg9p1seb_rtrmadp_0_health-coronavirus-who-ryan

WHO says Covid will mutate like the flu and is likely here to stay

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="740" height="416" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/106914167-1626861873395-gettyimages-1234061399-sindeyev-notitle210719_npeAJ.jpeg" alt="" class="wp-image-410239" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/106914167-1626861873395-gettyimages-1234061399-sindeyev-notitle210719_npeAJ.jpeg 740w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/106914167-1626861873395-gettyimages-1234061399-sindeyev-notitle210719_npeAJ-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/106914167-1626861873395-gettyimages-1234061399-sindeyev-notitle210719_npeAJ-140x80.jpeg 140w" sizes="(max-width: 740px) 100vw, 740px" /><figcaption>A bitcoin sign with a graph pictured in the background.
STR | NurPhoto via Getty Images</figcaption></figure>



The price of bitcoin fell Tuesday after breaking through $52,000 late Monday, reaching its highest level since May.



The price action comes on the day <a href="https://www.cnbcafrica.com/2021/el-salvador-bought-21-million-of-bitcoin-as-it-becomes-first-country-to-make-it-a-legal-currency/">El Salvador is set to adopt the largest cryptocurrency by market cap as legal tender,</a> becoming the first country to do so. Bitcoin dropped as much as 16% on Tuesday morning. It was last down about 9.5% and trading at $46,892.04, according to Coin Metrics. Ether fell 12% to $3,441.21.



<div class="wp-block-group"><div class="wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow">
<h3 class="wp-block-heading" id="h-bitcoin-becomes-legal-tender-in-el-salvador">Bitcoin becomes legal tender in El Salvador</h3>


		
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Crypto adjacent stocks&nbsp;MicroStrategy&nbsp;and&nbsp;Coinbase&nbsp;also lost about 9% and 4%, respectively. Coinbase users were experiencing delayed or canceled transactions at “elevated rates” in the morning, the company&nbsp;said in an update&nbsp;on Twitter, but those issues were resolved by the afternoon. Major crypto exchanges Kraken and Gemini were also investigating delays and performance issues.



Early Tuesday El Salvador temporarily disabled Chivo, its government-run <a href="https://www.cnbcafrica.com/quotes/btc=x/">bitcoin</a> wallet, to increase the capacity of the servers, which were hindering new users from installing it, President Nayib Bukele announced in a tweet at about 7:00 a.m. EST.



“Any data they try to enter at this time will give them an error,”&nbsp;he said. “This is a relatively straightforward problem, but it cannot be fixed with the system connected.”



The market action is unsurprising, according to Leah Wald, CEO at Valkyrie&nbsp;Investments, who said the news was largely priced into the market “a while ago.”



“When this move was first announced, it didn’t have nearly as big of an impact on price as some may have expected it might, possibly because El Salvador’s population is less than New York City’s, but also because the announcement was light on details and people were on the fence about how this was going to be implemented,” she told CNBC, noting that much of El Salvador lives in poverty and doesn’t have the internet or smartphone access required to participate in the bitcoin network. “Transaction fees, processing times, and other hurdles also make this feel more like a beta test rather than a solution to many of the problems plaguing the country’s poor,” Wald added.



As part of the new law, businesses will be required to accept bitcoin for goods and services, though merchants who aren’t technologically able to accept bitcoin will be exempt. The government has installed 200 bitcoin ATMs around El Salvador. It also&nbsp;bought 400 bitcoins&nbsp;worth about $20 million and is preloading Chivo wallets with $30 worth of bitcoin for Salvadorans who register.



Some traders are saying on social media that they will be buying $30 worth of bitcoin in their local fiat currencies to commemorate and support El Salvador’s new law, at 3:00 p.m. ET. But bitcoin prices were sliding into the afternoon anyway.



“What is most worth looking out for is whether or not neighboring countries in Latin America, or those elsewhere around the world, begin to adopt bitcoin as their national currency as well,” Wald said. “Should this occur, that is when we could see a parabolic move higher, as the momentum gained from many millions more people having instant access to crypto should result in more adoption, more HODLing, and higher prices.” HODLing is crypto community slang for the buy-and-hold investment strategy.



Bitcoin advocates have long held there’s a strong case for Latin American markets using the cryptocurrency as a medium of exchange, for remittances and even for central banks that experience high currency depreciation.



On Monday Panamanian politician Gabriel Silva introduced the “Crypto Law,” which “seeks to make Panama a country compatible with the blockchain, crypto assets and the internet,” he said on Twitter. “This has the potential to create thousands of jobs, attract investment and make the government transparent,” he added.

106914167-1626861873395-gettyimages-1234061399-sindeyev-notitle210719_npeAJ

Bitcoin tumbles nearly 10% as El Salvador adopts it as legal tender

How The GPU Chip Shortage Hit Gamers And Crypto Miners

Investors position for interim dividends

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="539" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/09/HD2QC4NZPVAX7AVDCUQLQIOZDE-820x539.jpg" alt="" class="wp-image-411910" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/09/HD2QC4NZPVAX7AVDCUQLQIOZDE-820x539.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/HD2QC4NZPVAX7AVDCUQLQIOZDE-300x197.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/HD2QC4NZPVAX7AVDCUQLQIOZDE-137x90.jpg 137w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/HD2QC4NZPVAX7AVDCUQLQIOZDE-768x505.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/HD2QC4NZPVAX7AVDCUQLQIOZDE.jpg 960w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>A view shows Nigeria&#8217;s Central Bank headquarters in Abuja, Nigeria November 22, 2020. Picture taken November 22, 2020. REUTERS/Afolabi Sotunde</figcaption></figure>



ABUJA, Sept 7 (Reuters) &#8211; Nigeria&#8217;s central bank is worried about boosting dollar supply on the currency market and not valuation of the naira, its director of monetary policy Hassan Mahmud said on Tuesday.



The naira hit a record low of 532 to the dollar on the unofficial or black market on Monday, with dollars hard to come by following the central bank&#8217;s recent actions to channel demand from the unofficial market, where the naira is trading at much lower levels.



&#8220;We are not really bothered much about valuation. What we are worried about is the supply side and the confidence in the system,&#8221; Mahmud told a virtual investor conference.



Nigeria is battling dollar shortages brought on by low oil prices following disruptions linked to the COVID-19 pandemic. The central bank has devalued the currency three times since March 2020, but the naira has continued to weaken.



<h3 class="wp-block-heading" id="h-read-more-why-nigeria-s-central-bank-won-t-ease-its-grip-on-the-naira">Read more: <a href="https://www.cnbcafrica.com/2021/explainer-why-nigerias-central-bank-wont-ease-its-grip-on-the-naira/">Why Nigeria’s central bank won’t ease its grip on the naira</a></h3>



In June, Central Bank Governor Godwin Emefiele, said Nigeria&#8217;s spot naira rate was overvalued by up to 10%, citing the bank&#8217;s real effective exchange rate model.



Mahmud said the level of the naira is expected to adjust based on demand but that market failures had made the bank adopt a managed float regime.



Nigeria has several exchange rates operating in parallel, a system put in place during a 2016 oil price crash because the government was seeking to avoid a large official devaluation of the naira as a matter of national pride.



Mahmud said the spot rate is the reference rate and that he expected a convergence of Nigeria&#8217;s several exchange rates, a gap which has frustrated investors.



On Tuesday, the naira traded at 411 per dollar on the official spot market, in the range of 407 to 412 naira where it has been since June. 



(Reporting by Chijioke Ohuocha; Editing by Jon Boyle, Emelia Sithole-Matarise and Jane Merriman)

HD2QC4NZPVAX7AVDCUQLQIOZDE

Nigeria central bank worried about FX supply not naira valuation

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="559" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/09/74HKXN4YGJNTXLGUEOUE6H5HXI-1-820x559.jpg" alt="" class="wp-image-411906" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/09/74HKXN4YGJNTXLGUEOUE6H5HXI-1-820x559.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/74HKXN4YGJNTXLGUEOUE6H5HXI-1-300x204.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/74HKXN4YGJNTXLGUEOUE6H5HXI-1-132x90.jpg 132w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/74HKXN4YGJNTXLGUEOUE6H5HXI-1-768x523.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/74HKXN4YGJNTXLGUEOUE6H5HXI-1.jpg 960w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>People work at &#8221;The Faktory&#8221;, a fashion design and clothing manufacturing company in Johannesburg, South Africa, March 4, 2021. REUTERS/Siphiwe Sibeko</figcaption></figure>



PRETORIA, Sept 7 (Reuters) &#8211; South Africa&#8217;s economy grew 1.2% in the second quarter compared to the previous three months, beating analysts&#8217; forecasts, statistics agency data showed on Tuesday.



Economists polled by Reuters had forecast quarterly gross domestic product (GDP) growth of 0.7% in seasonally adjusted but non-annualised terms.



In unadjusted year-on-year terms, GDP jumped 19.3% in the second quarter, reflecting a low base last year when the government shuttered much of the economy during a harsh lockdown to contain the spread of the coronavirus.



<h3 class="wp-block-heading" id="h-read-more-south-africa-s-unrest-likely-to-shave-0-7-off-2021-growth-says-s-p">Read more: <a href="https://www.cnbcafrica.com/2021/south-africas-unrest-likely-to-shave-0-7-off-2021-growth-says-sp/">South Africa’s unrest likely to shave 0.7% off 2021 growth, says S&amp;P</a></h3>



The agriculture, trade and mining sectors performed well between April and June, whereas manufacturing and construction fared badly.



Statistics South Africa revised first-quarter GDP growth to 1.0% quarter on quarter from a reading of 1.1% previously.



Africa&#8217;s most industrialised economy has seen an uneven recovery from the pandemic, with some sectors like mining boosted by bumper commodities prices but others struggling under successive COVID-19 infection waves and lockdown restrictions.



South African President Cyril Ramaphosa put public works and job creation at the heart of a recovery plan launched last year. But unemployment struck a new record high above 34% in the second quarter, data showed last month.



(Reporting by Alexander Winning Editing by Nqobile Dludla and Raissa Kasolowsky)

74HKXN4YGJNTXLGUEOUE6H5HXI-1

South African economy grows 1.2% in Q2, beats forecasts

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="740" height="416" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/09/106937882-1630990784900-gettyimages-1234925807-EL_SALVADOR_BITCOIN.jpeg" alt="" class="wp-image-411901" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/09/106937882-1630990784900-gettyimages-1234925807-EL_SALVADOR_BITCOIN.jpeg 740w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/106937882-1630990784900-gettyimages-1234925807-EL_SALVADOR_BITCOIN-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/106937882-1630990784900-gettyimages-1234925807-EL_SALVADOR_BITCOIN-160x90.jpeg 160w" sizes="(max-width: 740px) 100vw, 740px" /><figcaption>A Chivo Bitcoin automated teller machine (ATM) at the Multiplaza Mall in San Salvador, El Salvador, on Saturday, Aug. 28, 2021. El Salvador began installing Bitcoin ATMs, allowing its citizens to convert the cryptocurrency into U.S. dollars and withdraw it in cash, as part of the governments plan to make the token legal tender. Camilo Freedman | Bloomberg | Getty Images</figcaption></figure>



El Salvador bought roughly $20.9 million worth of <a href="https://www.cnbcafrica.com/quotes/btc=x/">bitcoin</a>, one day before it formally adopts the world’s most popular cryptocurrency as legal tender. 



In a series of tweets Monday, President Nayib Bukele revealed that the country had purchased a total of 400 bitcoin, the first step in a larger push to add the digital currency to its balance sheet.



The tweets were posted a few hours apart. Based on the bitcoin price at the time of the tweets, the amount of the digital coin purchased totaled roughly $20.9 million.



“Our brokers will be buying a lot more as the deadline approaches,” he wrote.



The price of bitcoin rose following the tweets and was trading at around $52,681.85 at 12:16 a.m. ET Tuesday.



<h3 class="wp-block-heading" id="h-read-more-el-salvador-becomes-first-country-to-adopt-bitcoin-as-legal-tender-after-passing-law">Read more: <a href="https://www.cnbcafrica.com/2021/el-salvador-becomes-first-country-to-adopt-bitcoin-as-legal-tender-after-passing-law/">El Salvador becomes first country to adopt bitcoin as legal tender after passing law</a></h3>



The posts came hours before El Salvador’s bitcoin law, which was passed in June, took effect Tuesday. El Salvador is the first country to accept bitcoin as legal currency, which will work alongside the U.S. dollar. Proponents and critics around the world will be watching to see how this unprecedented experiment plays out.



Bukele’s announcement marks a major milestone for bitcoin. El Salvador is now the first country to have officially put bitcoin on its balance sheet and hold it in its reserves.



But the policy has drawn criticism across the country. Nearly 70% of Salvadorans surveyed by the Central American University disagreed with the administration’s decision to adopt bitcoin as legal tender. Many were also unsure of how to use the digital currency.



Supporters of El Salvador’s move say that it indicates growing acceptance of bitcoin and that other countries could follow. The Salvadorian government hopes it will boost financial inclusion in a country where around 70% of citizens do not have access to traditional financial services, according to the bitcoin law.



Remittances, or the money sent home by migrants, is also important for the economy, accounting for more than 24% of El Salvador’s gross domestic product, according to the World Bank.



The legislation allows prices to be displayed in bitcoin, tax contributions to be paid with the digital currency, and exchanges in bitcoin will not be subject to capital gains tax.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2021/bitcoin-rallies-13-jumping-above-37000-after-el-salvador-passes-law-to-adopt-it-as-legal-tender/">Bitcoin rallies 13% jumping above $37,000 after El Salvador passes law to adopt it as legal tender</a></h3>



El Salvador launched a wallet app called Chivo which citizens can sign up for with a national ID in order to transact using bitcoin. Users will receive $30 worth of bitcoin when they sign up in a push to speed up adoption.



Last Tuesday, the Congress in El Salvador passed a law to create a $150 million fund to help facilitate conversions from bitcoin to U.S. dollars.



But bitcoin is known for wild volatility at times, raising concerns about its effectiveness as a currency.



“Bitcoin isn’t really designed to be a means of exchange so this is an early experiment for the currency,” Philip Gradwell, chief economist at data platform Chainalysis, told CNBC’s “Capital Connection.”



“I think the main use in El Salvador is really going to be around remittances and people using it to save some wealth and really perhaps just to be some competition to the dollar in the country.”

106937882-1630990784900-gettyimages-1234925807-EL_SALVADOR_BITCOIN

El Salvador bought $21 million of bitcoin as it becomes first country to make it a legal currency

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/09/GettyImages-488889124-820x547.jpg" alt="" class="wp-image-411886" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/09/GettyImages-488889124-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/GettyImages-488889124-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/GettyImages-488889124-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/GettyImages-488889124-768x513.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/GettyImages-488889124-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/GettyImages-488889124-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>A worker gestures towards railway freight wagons loaded with bauxite, which is refined into aluminum, at a treatment plant operated by Compagnie des Bauxites de Guinee (CBG) in Kamsar, Guinea, on Monday, Sept. 7, 2015. With 43 percent of its population of 12 million living on less than $1.25 a day, Guinea ranks amongst the most impoverished countries in the world, according to World Bank data. Photographer: Waldo Swiegers/Bloomberg via Getty Images</figcaption></figure>



JOHANNESBURG, Sept 6 (Reuters) &#8211; Prices for aluminium ore bauxite from Guinea hit their highest in almost 18 months in top metals consumer China on Monday, as buyers fretted about supply after a coup in the West African country though no operations reported being impacted.



Guinea is the world&#8217;s second-biggest producer of the raw material, which is refined into alumina, a substance used to make aluminium metal, and the top supplier to China.



Guinean bauxite for delivery to China was last assessed by Asian Metal at $50.50 a tonne, up 1% from Friday and the highest since March 16, 2020. Prices are up around 16% so far this year.



The ouster on Sunday of Guinea&#8217;s President Alpha Conde by an army unit also extended a rally in aluminium prices to decade highs, causing shares in aluminium producers Norsk Hydro and Rusal to jump.



The unrest did not immediately impact bauxite operations, though, which are key to Guinea&#8217;s economy as its main foreign currency earner. The country produced 88 million tonnes of bauxite last year according to mines ministry statistics.



<h3 class="wp-block-heading" id="h-read-more-elite-guinea-army-unit-says-it-has-toppled-president">Read more: <a href="https://www.cnbcafrica.com/2021/elite-guinea-army-unit-says-it-has-toppled-president/">Elite Guinea army unit says it has toppled president</a></h3>



&#8220;It is highly unlikely that the coup will have any major short term impact on exports, which are always at the lowest part of the cycle in September with stockpiles depleted as the rainy season comes to an end,&#8221; said Guinea bauxite industry specialist Bob Adam.



&#8220;Any incoming government will want to make sure that it doesn&#8217;t jeopardise future earnings and investment,&#8221; he added.



Coup leader Mamady Doumbouya said on Monday that a curfew imposed in mining areas had been lifted.



Guinea&#8217;s top bauxite producer Société Minière de Boké (SMB) did not immediately reply to a request for comment.



A spokesperson for Aluminium Corp of China Ltd (Chalco), the world&#8217;s biggest producer of alumina, said its bauxite business in Guinea was operating normally.



Singapore&#8217;s TOP International Holding, which owns two bauxite mines in Guinea, said operations were ongoing &#8220;with minimal disruption&#8221; and the situation at mine sites in Boke and Boffa was stable.



A Compagnie des Bauxites de Guinée (CBG) spokesperson said its mines had not been impacted by the turmoil.



Rusal, which owns the Compagnie des Bauxites de Kindia (CBK) in Guinea, did not immediately respond to questions on whether its operations had been disrupted.



For a graphic on Guinea&#8217;s bauxite production, click: <a href="https://tmsnrt.rs/3l1NSxW">https://tmsnrt.rs/3l1NSxW</a>



AngloGold Ashanti said its Siguiri gold mine in Guinea was operating normally.



&#8220;We&#8217;re monitoring the situation and are in close contact with the leadership of our mine in Guinea, which is operating normally,&#8221; the gold miner said in a statement. Siguiri produced 117,000 ounces of gold in the first six months of this year.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2021/toppled-conde-failed-to-live-up-to-pledges-in-guinea/">Toppled Conde failed to live up to pledges in Guinea</a></h3>



The coup casts further doubt on the future for Guinea&#8217;s many iron ore mine projects.



Rio Tinto, which is developing part of Guinea&#8217;s huge Simandou iron ore project alongside Chinalco, declined to comment on how the overthrow might impact its plans in the country.



Andrew Gadd, senior steel analyst at CRU Group, said: &#8220;Sourcing the finances for Simandou has proved very difficult and the uncertainty generated by the current developments will challenge the commitment of interested parties.&#8221;



Guy de Selliers, chairman of the Société des Mines de Fer de Guinée (SMFG) which is developing the Nimba iron ore project, said: &#8220;Irrespective of who is in charge, they will want this project to happen because it is good for the country.&#8221;



De Selliers said SMFG has political risk insurance through the World Bank&#8217;s Multilateral Investment Guarantee Agency.



(Reporting by Helen Reid; Additional Reporting by Melanie Burton in Melbourne, Polina Devitt in Moscow, Mai Nguyen in Singapore and Tom Daly; Editing by Edmund Blair, Emelia Sithole-Matarise and Jane Merriman)

Operations At A Compagnie Des Bauxites De Guinee (CBG) Bauxite Treatment Plant

Guinea bauxite prices rise after coup, mines report no immediate impact

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/06/GettyImages-1257380436-820x547.jpeg" alt="" class="wp-image-407132" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/06/GettyImages-1257380436-820x547.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/06/GettyImages-1257380436-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/06/GettyImages-1257380436-120x80.jpeg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2021/06/GettyImages-1257380436-768x512.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/06/GettyImages-1257380436-1536x1024.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/06/GettyImages-1257380436-scaled.jpeg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>African woman wearing protective face mask buying grocery at a supermarket. Female customer shopping at a local grocery store.</figcaption></figure>



Sept 6 (Reuters) &#8211; South Africa&#8217;s consumer confidence improved slightly in the third quarter from the three months prior, a survey showed on Monday, helped by pent-up demand for big-ticket purchases such as cars and electronic appliances after vaccination drives.



The consumer confidence index (CCI), sponsored by First National Bank (FNB) and compiled by the Bureau for Economic Research (BER), rose to minus 10 points from minus 13 in the second quarter.



&#8220;The fact that consumer sentiment did not deteriorate further on the back of the violent protests and rampant looting that tore through KwaZulu-Natal and Gauteng during July points to a level of resilience among consumers,&#8221; according to the survey.



<a href="https://www.cnbcafrica.com/2021/south-africa-violence-looting-ebbs-but-death-toll-up-to-117/">Riots broke out in July</a>, leading to damages of hundreds of businesses, after former President Jacob Zuma handed himself in to start a 15-month jail term for contempt of court.



The civil unrest that engulfed parts of the country &#8220;would undoubtedly have knocked both business and consumer confidence during July,&#8221; the survey said.



<a href="https://www.cnbcafrica.com/2021/south-africa-targets-35-mln-people-vaccinated-against-covid-19-by-christmas/">The rollout of COVID-19 vaccines</a> bolstered confidence levels, the survey suggested, with government support for its employees and an uptick in dividend payments also countering the impact of the civil unrest.



The confidence levels of high-income, middle-income and low-income households were at broadly similar levels during the quarter, the survey of about 500 respondents showed. 



(Reporting by Yadarisa Shabong in Bengaluru; Editing by Ramakrishnan M.)

Female customer with face mask shopping at a grocery store

South Africa consumer confidence improves in third quarter after vaccine rollouts

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/09/GettyImages-1229038349-820x547.jpg" alt="" class="wp-image-411869" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/09/GettyImages-1229038349-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/GettyImages-1229038349-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/GettyImages-1229038349-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/GettyImages-1229038349-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/GettyImages-1229038349-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/GettyImages-1229038349-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>Guinea President Alpha Conde addresses his supporters during a campaign rally in Kissidougou on October 12, 2020. &#8211; Presidential elections are to be held on October 18, 2020, with incumbent President bidding for a third term in office, defying critics who say he forced through a new constitution this year enabling him to sidestep two-term presidential limits. (Photo by CAROL VALADE / AFP) (Photo by CAROL VALADE/AFP via Getty Images)</figcaption></figure>



Sept 6 (Reuters) &#8211; The apparent overthrow of President Alpha Conde in Guinea capped a steady slide from grace for the veteran opposition leader and human rights professor whom critics say failed to live up to pledges to deliver democratic restoration and ethnic reconciliation.



It was not entirely clear what had precipitated the army&#8217;s move on Sunday against the 83-year-old Conde. A special forces commander said in a televised address that &#8220;poverty and endemic corruption&#8221; had driven his troops to act.



The putsch came less than a year after a disputed election in which Conde won a third term after changing the constitution to allow himself to stand again.



For Conde&#8217;s critics, the third-term bid was the final nail in the coffin of his claims to be &#8220;Guinea&#8217;s Mandela&#8221; and risked chaos in the West African bauxite and iron ore producer.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2021/malis-former-coup-chief-takes-power-after-military-arrests-president/">Mali’s former coup chief takes power after military arrests president</a></h3>



Alioune Tine, an independent human rights expert for the United Nations and founder of the AfrikaJom Center think tank, said Conde&#8217;s refusal to cede power had made either a popular uprising or a coup inevitable.



&#8220;Alpha Conde is one of the politicians who worked over 40 years for democracy in Guinea. Once in power, he totally destroyed it,&#8221; Tine told Reuters.



&#8220;He put people in prison. He killed and he completely refused any political dialogue with the opposition.&#8221;



Conde has previously denied accusations of human rights abuses. Echoing other African leaders who have altered constitutions to hang onto power, he said he needed more time to realize his vision of a modern Guinea.



Dozens of people were killed in protests in late 2019 and early 2020 against a referendum to approve the new constitution, which passed easily due to an opposition boycott. Leaders of the protest movement were arrested.



The lead-up to the election last October was then marred by sporadic violence between members of Conde&#8217;s Malinke ethnic group and his main rival Cellou Dalein Diallo&#8217;s Peul. Conde was declared the winner with 59.5% of the vote.



Diallo disputed the results, although there was relatively little violence once they were certified.



<h2 class="wp-block-heading" id="h-guinea-s-mandela">&#8216;GUINEA&#8217;S MANDELA&#8217;</h2>



The 2010 election of Conde, Guinea&#8217;s most prominent champion of multi-party democracy, was greeted with optimism by human rights activists and international organisations.



Until then, Conde had been the chief critic of a succession of autocratic leaders: Ahmed Sekou Toure, who ruled from independence in 1958 until he died in 1984; Lansana Conte, who seized power in a coup after Toure&#8217;s death; and Moussa Dadis Camara, who led a coup after Conte&#8217;s death in 2008.



His advocacy earned him a death sentence under Toure, forcing him into exile in France, where he became an assistant professor of human rights at the Sorbonne.



He lost presidential elections to Conte in 1993 and 1998. In 1998, he was arrested on the eve of the vote, accused of plotting to overthrow the government and jailed for the next two years.



After the ruling junta agreed in 2010 to a democratic transition, Conde finally got his chance to stand in an open election and scored an upset victory over Diallo.



&#8220;I will try in my small way to be Guinea&#8217;s Mandela and unite every son of Guinea,&#8221; he said in his inaugural address. &#8220;The restoration of social cohesion and national unity requires a collective look at our painful past.&#8221;



His government won early international praise for starting to reform the army, seeking to prosecute soldiers who committed rights violations, reforming the mining sector, and winning billions in debt relief.



But he encountered swift setbacks at home. Ethnic riots between Malinke and Peul broke out in 2012. Disaffected young people attacked an iron ore project run by Vale, causing millions of dollars in damage.



Faced with opposition protests and labor strikes, his security forces cracked down, drawing criticism from the United Nations and rights groups.



Then, the 2013-2016 Ebola outbreak killed more than 2,500 people in Guinea and dealt a multi-billion dollar hit to the economy.



Conde won re-election in 2015, but more turmoil followed as his opponents accused him of angling for a third term and started organising large street demonstrations.



His promises of reconciliation failed to materialise, with his critics instead accusing him of exploiting ethnic divisions to his political advantage.



&#8220;He really tried to play on the ethnic divisions, which split the Guinean population,&#8221; said Ryan Cummings, the director of the consultancy Signal Risk.



As <a href="https://www.cnbcafrica.com/2021/elite-guinea-army-unit-says-it-has-toppled-president/">news of his toppling was confirmed on Sunday</a>, some rejoiced.



&#8220;It&#8217;s a victory for the Guinean youth in general, we are really happy, we say well done to the Guinean army, to the special forces,&#8221; said Conakry resident Thierno Abdourahim Diallo.



&#8220;The youth have won, today we are free, everyone is free today.&#8221; 



(Reporting by Aaron Ross; Additional reporting by Saliou Samb in Conakry and David Lewis Editing by Bate Felix and Sandra Maler)

GUINEA-POLITICS-VOTE

Toppled Conde failed to live up to pledges in Guinea

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/09/D2M33JRVGRL7HKOVMCCOPFZDVA-820x461.jpg" alt="" class="wp-image-411864" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/09/D2M33JRVGRL7HKOVMCCOPFZDVA-820x461.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/D2M33JRVGRL7HKOVMCCOPFZDVA-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/D2M33JRVGRL7HKOVMCCOPFZDVA-160x90.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/D2M33JRVGRL7HKOVMCCOPFZDVA-768x432.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/D2M33JRVGRL7HKOVMCCOPFZDVA-1536x864.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/D2M33JRVGRL7HKOVMCCOPFZDVA.jpg 1920w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>An army vehicle is seen at Kaloum neighbourhood during an uprising by special forces in Conakry, Guinea September 5, 2021. REUTERS/Saliou Samb</figcaption></figure>



CONAKRY, Sept 5 (Reuters) &#8211; Special forces soldiers appeared on Sunday to have ousted Guinea&#8217;s long-serving president, telling the nation they had dissolved its government and constitution and closed its land and air borders.



As the United Nations condemned any takeover by force and the West African region&#8217;s economic bloc threatened reprisals, the elite army unit&#8217;s head, Mamady Doumbouya, said &#8220;poverty and endemic corruption&#8221; had driven his forces to remove President Alpha Conde from office.



&#8220;We have dissolved government and institutions,&#8221; Doumbouya &#8211; a former French foreign legionnaire &#8211; said on state television, draped in Guinea&#8217;s national flag and surrounded by eight other armed soldiers. &#8220;We are going to rewrite a constitution together.&#8221;



Gunfire erupted near the presidential palace in the capital, Conakry, on Sunday morning. Hours later, videos shared on social media, which Reuters could not immediately authenticate, showed Conde in a room surrounded by army special forces.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2021/guinea-tracks-potential-ebola-contacts-says-can-overcome-new-outbreak/">Guinea tracks potential Ebola contacts, says can overcome new outbreak</a></h3>



The U.S. State Department issued a statement headed, &#8220;On the military seizure of power in Guinea,&#8221; and said: &#8220;The United States condemns today&#8217;s events in Conakry.&#8221;



It said violence and any extra-constitutional measures would only erode Guinea&#8217;s prospects for peace, stability and prosperity, and added: &#8220;These actions could limit the ability of the United States and Guinea&#8217;s other international partners to support the country as it navigates a path toward national unity and a brighter future for the Guinean people.&#8221;



Military sources said the president was taken to an undisclosed location and that the forces commanded by Doumbouya &#8211; whom one of the sources, a close colleague, described as calm and reserved by nature &#8211; had made several other arrests.



They included senior government officials, the sources said.



The junta that appreared to have seized power later said that Conde was not harmed, his wellbeing was guaranteed and he was being given access to his doctors.



Outgoing ministers and heads of institutions were invited to a meeting on Monday morning in parliament, they said in a statement read on the state broadcaster.



&#8220;Any failure to attend will be considered as a rebellion against the CNRD,&#8221; the group said referring to its chosen name, the National Rally and Development Committee (CNRD).



Guinea&#8217;s main opposition leader, Cellou Dalein Diallo, denied rumours that he was among those detained.



<h2 class="wp-block-heading" id="h-taxes-and-protests">TAXES AND PROTESTS</h2>



Conde won a third term in October after changing the constitution to allow him to stand again, triggering violent protests from the opposition.



In recent weeks the government has sharply increased taxes to replenish state coffers and raised the price of fuel by 20%, causing widespread frustration.



By Sunday evening it was not clear if Doumbouya had taken full control, the defence ministry having issued a statement saying an attack on the presidential palace had been repelled.



But United Nations Secretary General Antonio Guterres said he strongly condemned &#8220;any takeover of the government by force&#8221; and called for Conde&#8217;s immediate release.



The Economic Community of West African States (ECOWAS) threatened to impose sanctions after what its chairman, Ghana&#8217;s President Nana Akufo-Addo, called an attempted coup.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2021/malis-former-coup-chief-takes-power-after-military-arrests-president/">Mali’s former coup chief takes power after military arrests president</a></h3>



The African Union said it would meet urgently and take &#8220;appropriate measures&#8221; while the foreign ministry in Nigeria, the region&#8217;s dominant power, called for a return to constitutional order.



Videos shared on social media had earlier shown military vehicles patrolling Conakry, and one military source said the only bridge connecting the mainland to the Kaloum neighbourhood, where the palace and most government ministries are located, had been sealed off.



<h2 class="wp-block-heading">&#8216;THE RICH WERE TAUNTING US&#8217;</h2>



By mid-afternoon, when the shooting had stopped, residents were venturing back onto the streets of the capital to celebrate the uprising&#8217;s apparent success.



A Reuters witness saw pick-up trucks and military vehicles accompanied by motorcyclists honking their horns and cheering onlookers. &#8220;Guinea is free! Bravo,&#8221; a woman shouted from her balcony.



Alexis Arieff, at the United States Congressional Research Service, said that, while mutinies and coups were nothing new in West Africa, the region had seen &#8220;major democratic backsliding&#8221; in recent years.



Both Conde and Ivory Coast&#8217;s leader have moved the legislative goalposts to extend the clock on their presidencies in the past year, while Mali has experienced two military coups and Chad one.



Guinea has seen sustained economic growth during Conde&#8217;s decade in power thanks to its bauxite, iron ore, gold and diamond wealth.



But few of its citizens have seen the benefits, and critics say his government has used restrictive criminal laws to discourage dissent, while ethnic divisions and endemic graft have sharpened political rivalries.



&#8220;While the president was proclaiming everywhere that he wanted to govern differently by annihilating corruption, the embezzlement of public funds increased. The new rich were taunting us,&#8221; Alassane Diallo, a resident of Conakry, told Reuters.



&#8220;It is all this that made it easier for the military.&#8221; 



(Reporting by Saliou Samb, Bate Felix, David Lewis and Camillus Eboh and Fadimata Kontao; additional reportng by David Brunnstrom in Washington; Writing by Hereward Holland and John Stonestreet; Editing by Frances Kerry, John Stonestreet and Sandra Maler)

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Somalia on edge as president, PM clash over intelligence chief

West African regional bloc suspends Guinea after coup

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Investors position for interim dividends

Nigeria central bank worried about FX supply not naira valuation

South African economy grows 1.2% in Q2, beats forecasts

El Salvador bought $21 million of bitcoin as it becomes first country to make it a legal currency

Guinea bauxite prices rise after coup, mines report no immediate impact

South Africa consumer confidence improves in third quarter after vaccine rollouts

Toppled Conde failed to live up to pledges in Guinea

Elite Guinea army unit says it has toppled president

News Tips

Advertise With Us

Newsletter

How this fund helped small businesses remain open during COVID-19 crisis

Senegal starts clock on $550 million U.S. grant to boost power supply

How investors’ risks are biting off Nigerian equities

Somalia on edge as president, PM clash over intelligence chief

West African regional bloc suspends Guinea after coup

IMF approves $567 mln in emergency support for Tanzania

WHO says Covid will mutate like the flu and is likely here to stay

Bitcoin tumbles nearly 10% as El Salvador adopts it as legal tender

How The GPU Chip Shortage Hit Gamers And Crypto Miners

Investors position for interim dividends

Nigeria central bank worried about FX supply not naira valuation

South African economy grows 1.2% in Q2, beats forecasts

El Salvador bought $21 million of bitcoin as it becomes first country to make it a legal currency

Guinea bauxite prices rise after coup, mines report no immediate impact

South Africa consumer confidence improves in third quarter after vaccine rollouts

Toppled Conde failed to live up to pledges in Guinea

Elite Guinea army unit says it has toppled president

News Tips

Advertise With Us

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